Industry urges future Westminster leadership not to forget previous commitments

If Andy Burnham is elected as the next leader of the Labour Party and Prime Minister, he must not allow his new government to abandon previous commitments to oil heated households.

This message, to make good on promises made to the UK’s 1.7 million oil heated households to explore more affordable low carbon heating solutions, comes from leading trade associations in the off-gas grid heating industry. The imminent change in leadership at Westminster is raising concerns that vital decisions on rural home heating delayed or forgotten, leaving off-grid families facing continued uncertainty.

During the election campaign in Makerfield, Burnham argued that Westminster has “refused to listen” to communities outside the capital for decades.

Under Sir Keir Starmer’s government, pressure from rural communities played a key role in convincing the government to launch its Alternative Clean Heating consultation, giving off-grid households a direct say in how their homes are heated.

An unprecedented 16,000 oil heated homes and technicians from across the UK submitted their views to the consultation to back renewable liquid fuels, like Hydrotreated Vegetable Oil (HVO), as a practical, affordable alternative to heat pumps. However, the government has still not responded to the consultation.

The cost of delay

The Future Ready Fuel campaign, supported by OFTEC and UKIFDA, has warned that any attempt by an incoming Labour leader to ‘kick the can down the road’ will hit rural communities hardest.

Current government policy is for households to switch to a heat pump, at a cost to an oil heated home of £17,000, according to the consultation. Even with the recent Boiler Upgrade Scheme uplift to £9,000 for off grid homes, this still leaves a significant financial shortfall. The trade bodies also highlight concern over the number of homeowners able to benefit given the current funding cap.

In contrast, the route favoured in the consultation responses of switching to the use of a renewable liquid fuel blend in the existing heating system removes any upfront cost. If all oil heated homes transitioned to a 20% HVO/kerosene blend, the carbon emission reduction would be equivalent to installing 347,000 heat pumps.

Despite their environmental benefit, renewable liquid fuels are subject to a higher level of tax than kerosene when used for home heating – an inequality that the Future Ready Fuel campaign has been urging the government to address.

Paul Rose, CEO of OFTEC and Ken Cronin, CEO of UKIFDA said: “The historic response to the recent consultation showed a massive groundswell of support for renewable liquid fuels. An incredible 16,000 rural households spoke up because they wanted a say in how they heat their home. In the current economic climate, they also cannot afford the high upfront costs and disruption of the current approach which prioritises heat pumps.

“However, with a new government, there is a risk progress could stall and decisions will be pushed further down the road. We’ve seen this happen time and time again. That’s why we’ve been pleased to hear Burnham put rural communities at the heart of his campaign. We share his view that these households should not be treated as an afterthought.

“When it comes to heating, renewable liquid fuels can deliver significant carbon reductions without putting a high financial burden on households which will be the consequence of the government’s current approach. If Burnham is elected as leader, we look forward to working positively to deliver this meaningful change for rural communities.”

Previous initiatives supported by Andy Burnham as Mayor of Greater Manchester such as the drive for affordable net zero homes, demonstrate his awareness of the need for both sustainability and affordability – in line with the industry proposals for domestic heating choices.

_{Image provided by OFTEC}